US Natural Gas Update: Larger Inventory Counters Heatwave to Edge Prices Down

() -- Natural gas futures regained some losses in after-hours trading on Thursday but ended down on the day after US government data showed a larger-than-expected increase in storage inventories, outweighing support from strong cooling demand during a widespread heatwave ahead of the long Independence Day holiday weekend. Both the front-month Henry Hub contract and the continuous contract edged down by 0.47% to $3.205 per million British thermal units. The August contract fell to an intraday low of $3.151/MMBtu ahead of the US Energy Information Administration's weekly storage report as traders anticipated a sizeable inventory build. Although prices recovered after the release, they remained below the previous session's close. The EIA reported that US natural gas inventories rose by 87 billion cubic feet in the week ended June 27, exceeding analysts' expectations for an 84-Bcf injection and well above the five-year average build of 64 Bcf for the period. Total gas inventories were 1.0% below year-earlier levels but stood 6.4% above the five-year seasonal average, indicating comfortable supply levels despite robust summer demand. Market sentiment was also pressured by updated.